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Cryptocrash King, Do Kwon Sentenced 4 Months Jail over Passport Forgery
South Korea’s popular crypto crash king, Do Kwon, has been sentenced to four months of jail in Montenegro for forging passports. He is the figure behind the $40bn (£31.3bn) collapse of the terraUSD and Luna tokens,
The court found that Kwon had committed the crime of document forgery, which is punishable by up to five years in prison. However, the court gave Kwon a lighter sentence because he had no prior criminal record and cooperated with the authorities.
Do Kwon is currently free on bail while he appeals the verdict. He has also been indicted in the United States on charges of securities fraud, wire fraud, and commodities fraud.
The sentencing of Do Kwon is a significant development in the case of the TerraUSD collapse. TerraUSD was a stablecoin that was supposed to be pegged to the US dollar, but it lost its peg in May 2022, causing a massive sell-off in the cryptocurrency market.
The collapse of TerraUSD has led to calls for greater regulation of the cryptocurrency industry. Some critics have argued that the lack of regulation allowed Do Kwon to get away with fraud.
The sentencing of Do Kwon is a step in the right direction, but it is important to note that he is still facing charges in the United States. It remains to be seen whether he will be convicted of those charges and how much jail time he will ultimately serve.
Here are some additional details about the case:
- Kwon and his co-defendant, Han Chang-hoon, were arrested in March 2023 at Podgorica Airport in Montenegro.
- The two men were found in possession of fake Costa Rican and Belgian passports.
- Kwon has denied the charges against him and has said that he will appeal the verdict.
- Kwon is also facing charges of securities fraud, wire fraud, and commodities fraud in the United States.
- The collapse of TerraUSD caused a massive sell-off in the cryptocurrency market, wiping out billions of dollars in value.
- The case of Do Kwon is a significant development in the debate about the regulation of the cryptocurrency industry.